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Lee Boo-jin, president of Hotel Shilla. (Photo: Hotel Shilla) |
[Alpha Biz= Paul Lee] Hotel Shilla is facing growing opposition from retail investors after putting forward a proposal to reappoint Lee Boo-jin as an inside director at its upcoming annual shareholders’ meeting.
According to regulatory filings, the company will hold its shareholder meeting on June 19 in Seoul, where the key agenda item is Lee’s reappointment. If approved, she will receive another three-year term on the board, extending her leadership of the company.
Lee has led Hotel Shilla since becoming CEO in 2011, overseeing the hotel, leisure and duty-free businesses. The board said her experience and leadership are needed to steer the company through a challenging business environment.
However, some minority shareholders argue that the justification for a sixth term is weak, citing sluggish performance and prolonged share price weakness. Online investor forums have seen calls for shareholders to vote against the proposal, turning the meeting into a test of investor confidence in the company’s governance and communication with shareholders.
Hotel Shilla posted revenue of 4.07 trillion won last year and returned to operating profit, but recorded a net loss of 172.8 billion won as weakness in its core duty-free business persisted.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
